TRYING TO GET CREATIVE W/CREATIVE FINANCING

[Chace Corbett]

I had someone reach out to me about seller financing an apartment they own outright. I currently own 5 units on the same street so I know the demographics and it’s close to most of my other properties. It’s very conveniently located. They are looking to sell for $206,000 with a 20% down payment, 15 year term (no payoff within the first 5 years) and 7% interest rate. They are very open to negotiating the down payment, term and interest. However this person is in their 60s so a 30 year term would not make sense for them and their whole reason for selling financing is to avoid capital gains. I’m trying to think creatively on the best route to go. I’m not concerned about making a ton during the first 5 years because I know I’ll have the option to get another mortgage once rates have gone down and pay them off in full. I just don’t want to be negative cash flow. I’d love to hear some suggestions or strategies that have worked for other in similar situations .